India's Sugar Export Quota Near Fulfillment Amid Domestic Challenges

India is close to exhausting its 1 million tonne sugar export quota for the current marketing year, as per ISMA's director. The sugar industry faces domestic challenges, including low prices and high farmer payments, prompting a shift toward ethanol production and the exploration of diversified revenue streams.

India is on track to meet its 1 million tonne sugar export quota for the current marketing year, according to Deepak Ballani, Director General of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA). The marketing season, spanning from October to September, has already seen exports of 600,000-700,000 tonnes.

The central government restricted sugar exports in the previous year to maintain domestic price stability but allowed releases this season with an eye on heightened production expectations for next year. Ballani confirmed that the current export targets would not be exceeded as the sector focuses on future crop prospects.

Amid these export activities, the domestic sugar market faces challenges like stagnant retail prices against increasing Fair Remunerative Prices for farmers. As a result, many producers are turning sugarcane juice and syrup into ethanol, seeking diverse revenue opportunities such as green hydrogen and aviation fuel to ensure economic viability.

(With inputs from agencies.)